Despite the strong overall performance of the stock market this year, two companies in the healthcare sector—HCA Healthcare (HCA) and CVS Health (CVS)—have seen particularly outstanding stock price increases, both exceeding 70%. Following such significant gains, investors naturally question whether these companies still hold investment value for the future. Analysis suggests that, based on solid industry fundamentals and clear long-term growth drivers, both companies are likely to deliver favorable returns to investors over the next decade.
HCA Healthcare is a leading operator of healthcare facilities in the United States. Its extensive network and stable payer partnerships form its core strengths. Recent strong financial performance, such as significant growth in revenue and net profit in the third quarter, has benefited from increased demand for medical services and improved reimbursement rates. More importantly, the key drivers behind its growth possess long-term sustainability.
The aging demographic structure in the U.S. is a definitive macro tailwind. It is projected that by 2035, the population aged 65 and over will outnumber those under 18, which will continuously drive up demand for various medical services. Against this backdrop, HCA Healthcare has steadily increased its medical service capabilities and patient experience through its diversified service network and investments in technology, leading to a consistent growth in market share—from 24% in 2012 to 27% in 2022. The company aims to further increase its share to 29% by 2030 and continue its expansion. While replicating a 70% surge every year may be unlikely, HCA Healthcare’s solid industry position and clear organic growth strategy make its long-term return prospects highly competitive.
CVS Health has faced cost pressures in recent years, particularly challenges in its Medicare Advantage business. Management is addressing this through a multi-year cost-cutting plan and strategically scaling back certain Medicare Advantage plans to focus on profitable growth. These measures aim to solidify its financial foundation and pave the way for healthy future development.
The company’s long-term appeal lies in its uniquely constructed ecosystem, which integrates pharmacy retail, insurance, and primary care services. Through acquisitions and the establishment of new subsidiaries (such as Cordavis, a partnership with a biosimilar manufacturer), CVS Health is expanding its footprint in value-based care and medication accessibility. Its deep community roots, trusted brand, and convenient services like rapid prescription delivery create a strong customer moat. Simultaneously, growing demand for prescription drugs and the demographic trend of an aging population will provide sustained momentum across its businesses. While the retail pharmacy sector is highly competitive, CVS Health’s integrated, end-to-end layout and brand advantages position it well to maintain a leading position, making it a viable long-term investment choice to hold until 2035.
In summary, both HCA Healthcare and CVS Health operate within the healthcare sector—a field with long-term upward demand—and each is reinforcing its competitive advantages through clear strategies.
